Modeling the Effects of Investment in Rail Transportation Iran

Capital as an important element in production, a decisive role in the production process of whole economic sectors. Besides, regarding the importance of growing transportation network and its impression on the economy, investment in this division significant role in the growth and prosperity of the irans. Hence, in this paper the beginning of the incremental capital output ratio was used and explained that, for rail transportation sector in the period 1975-2012, the incremental capital output ratio has been figured. The subject of investment in rail transportation sector value added growth with the neoclassical growth model And model Vector Auto Regression and software is estimated Micro fit and Eviews. The results of the calculation of the incremental capital output ratio show that this ratio is equivalent of 1.084 and This means that for producing a billion rials value added in rail transport section need to invest equivalent 1.084 billion rials is necessary. The results of the estimation show that an increase of one percent in the ratio of investment made in the rail transport sector on the gross domestic product this section will be Increase the value added growth rate of 0.315 percent.